study predicts 400 jobs
Change text size for the storyPrintReport an errorA controversial rare earth mine proposal in the Lake Kipawa area could create up to 2,400 direct and indirect jobs – about half in Abitibi-Temiscamingue – during the two-year construction phase, according to a report by KPMG-SECOR.The report, prepared for Matamec Explorations Inc., the company behind the project, also predicts up to 408 direct and indirect jobs will be created in Quebec and about 27 in Ontario when the mine is in full operation.“We are still far away from the first shovel,” said Claude Brisson, director of regional relations, Wednesday.“We still have to go through all the certification process” at both the provincial and federal levels, he said, and it will be the spring, at the earliest, before the company can even apply to operate the mine.The earliest the construction portion of the mine can begin will be the middle of 2015, Brisson said, with the mine not opening until the end of 2016 at the earliest.“That’s a positive scenario,” Brisson said. “We accept that. It will take the time it takes.”When in operation, the mine is expected to employ 229 people directly. Brisson said at least two-thirds of those workers will be hired locally.The report, A Study on Local and Regional Economic Benefits of the Kipawa JV Heavy Rare Earth Project, outlines other economic predictions for the operation, including:Wealth creation in Quebec valued at approximately $212 million;Creation of 408 direct and indirect jobs, nearly half in the region;The economic impact is estimated at $61.9 million annually in Quebec;$15.5 million in salaries and benefits in southern Temiscamingue;At about $70,500, the average salary of the Kipawa project is 50% higher than the Quebec average salary;In the Temiscamingue region, the GDP will increase by $20 million in an almost non-existent sector.“On the economic sign, the numbers are very conservative,” Brisson said. “We are talking millions of dollars in paycheques.“What we want to do is maximize the benefits for the region. We will purchase and hire as many people and services in the region as possible.”He said that will spin off to the North Bay-Nipissing region and the Sudbury and Timmins mining regions as well.Brisson admitted there has been opposition to the project in the area, and this report, as well as reports on the environmental impact and overall economic impact, are attempts to address local concerns.“We understand their concerns. We are in a region that is very beautiful. We don’t want to damage anything. We want to get the most for the region out of this project,” he said.The environmental impact study is expected to be released later this fall, while the economic impact study is expected in early 2014.The Matamec mine, if approved, could see the extraction of 4,200 tonnes a day.According to Matamec, the demand for rare earth is constantly changing due to the use of materials in a wide range of common devices such as computers, cellphones, batteries, solar cells, wind turbines, hybrid and electric cars.Brisson said earlier the open pit is a “small scale project," with a pit measuring about 1.5 kilometres by 300 metres wide. It is close to Lac Saires (Lake Brennan) north of Maniwaki Road.The ore-processing plant, warehouses, a laboratory and administrative offices will occupy the second site. The processing plant was moved away from the open pit location, Brisson said, so the nearby waterways, including the Kipawa River, will be protected.There will also be a tailings site to take the waste from the treated ore. It will also be well away from the waterways, Brisson said, and will be easy to treat.About 95% of the world supply of rare earth minerals is supplied by China. The Matamec proposal, if approved, would create the first rare earth mining operation in Canada.On the web: www.matamec.com